Russo and Steele to host collector-car auction at new location

Russo and Steele is moving its collector-car auction to a new paved site at Loop 101 and Hayden Road, where it will use structured, temporary buildings next year.

The relocation follows a catastrophic collapse of its rented tents in January during a storm that caused millions of dollars in damage to vintage cars that were set for auction.

Russo and Steele Collector Car Automobile Auctions was forced to shut down the sale at Scottsdale Road and Loop 101 for more than two days to clean up the site. No one was seriously injured.

"We're making every effort with the new site and a new structure to make it safe," said Drew Alcazar, Russo and Steele co-owner.

Nearly 385 cars are committed to the 11th annual auction Jan. 19-23 and the lineup could include up to 700 cars, he said.

Russo has a five-year agreement for the new site that will allow for some improvements. That includes a paved asphalt pad and temporary structures similar to those used for a Gooding and Co. car auction at Scottsdale Fashion Square.

A German company, Losberger, is providing the temporary structures.

Russo will occupy about 20 acres of state trust land for the auction and parking.

It is part of a larger section of state land that is used as a parking lot for the Waste Management Phoenix Open and events at WestWorld.

Scottsdale pays the Arizona State Land Department $63,500 annually for the land, said Jim Adams, the department's real-estate director.

The city passes those fees onto the users under a formula established by the department, Scottsdale administrator Kroy Ekblaw said.

Here are the annual fees paid by each entity:

 Russo and Steele, $30,000.

 Phoenix Open (Thunderbirds), $25,000.

 WestWorld events, $7,500.

 Barrett-Jackson Collector Car Auction, $1,000.

Russo and Steele pays more because its auction and parking are on the site, Ekblaw said.

Barrett-Jackson uses the site only for overflow parking if some of its other lots are too wet, he added.

Heavy rain and high winds wreaked havoc on Barrett-Jackson and Russo and Steele at their events in January.

But Russo's tents, provided by Tri-Rentals, did not hold. Tent poles and debris damaged the cars and rain water soaked some car interiors.

There is ongoing litigation involving more than 100 car owners, Russo and Steele and Tri-Rentals, a subsidiary of Los Angeles-based Classic Party Rentals Inc.